As enterprises the world over continually seek to comply with legislated requirements (e.g. taxation laws) and current business practices (e.g. Internet-based e-business capability), the advantages of integration with supplier's systems to improve Supply Chain Management (SCM) represents just one challenge faced in a competitive environment.
ERP systems are accounting-oriented information systems for identifying and planning the resources necessary to process customer orders. ERP systems typically differ from MRPII system in technical requirements such as graphical user interface, relational database, use of 4GL language, and computer assisted software engineering tools and development, client/server architecture and open system portability. ERP systems support a method for effective planning and control of an enterprise's resources necessary to accept, process, ship and account for customer orders in a manufacturing, distribution or service company. ERP is considered to be an integral part of Supply Chain Management (SCM) and often serves as the transaction backbone for other Supply Chain applications. Many ERP solution providers are adding other Supply Chain functions such as Advanced Planning and Scheduling to their application suites. SCM extend the method to reach trading partners, transportation and logistics suppliers, and other supporting functions.
Larger enterprises normally have the resources to adopt to the changing environment, mainly by implementing Enterprise Resource Planning (ERP) packages such as SAP™, BAAN™ and PeopleSoft™. However, smaller enterprises frequently do not have the resources to implement a dedicated world-class system to achieve a competitive advantage or to simply stay in business.
Application Service Providers (ASP's) deploy, host, manage and rent access to applications over the Internet from a centrally managed facility. However, ASP's typically concentrate on providing one or more individual applications, rather than integration of multiple applications. Furthermore, ASP's offer only a very limited degree of integration with client's existing systems.
e-commerce can be defined as buying and selling over digital media. e-business, in addition to encompassing e-commerce, includes both front- and back-office applications that form the engine for modem business. e-business is about redefining old business models, with the aid of technology, to maximise customer value. e-business involves the convergence of Internet and information technologies, thus allowing more effective and efficient communications both internally and externally for companies and organizations.
In the light of current developments, most specifically the proliferation of the Internet, a need exists to provide a comprehensive platform for a business to become an e-business.